First OOI in a few months! Any tips?

[Ben Leary]

Hello! I am 23 years old and decided to invest in real estate about 6 months ago. I am invested in the stock market and was able to use my mother as a mentor but have no such help when it comes to real estate. Which is why I am here!

I have been looking at duplexes and multi-family homes in the Manchester (NH) area in hopes of getting this plan together before the lease at my current apartment is up. I live in Manchester now, and have about $3,000 saved. I put together a personal financial statement together today and if I live on beans and rice for the next few months, I should be able to save about $10,000 for a down payment this summer. I just started actively looking on Zillow about 3 days ago. It is early in the process but looking cannot hurt and I have been reading everywhere that finding a great deal is everything regardless of what type of property investing you are doing. Also, is New Hampshire a good place for a first real estate investment or should I consider long distance. I have read that long distance complicates the process, but I have also been told New Hampshire is notorious for terrible property tax to make up for their lack of other taxes.

I have been researching loans and think that an FHA loan would be best for my first real estate investment. My credit is good (770) and I could get a cosigner if needed. My job only provides about $22,000 a year and my debt-to-income is .3% above the <43% DTI ratio banks like to see on an FHA loan. However, I read online that you can use monthly rental payments you are receiving from the property when calculating the DTI ratio.

I would hire a team to help me once I got the duplex (and other future property investments) but am not entirely sure if this is necessary with such a small and simple first investment. I am also not entirely sure where to get connected with such a team.

Is getting an LLC worth it this early? I plan on getting a small apartment complex next hopefully before the end of 2021.

Is getting my real estate license worth it? I will be graduating from college with my Bachelor’s degree in finance March 2022 and would probably not consider taking the course until then but it is something I am considering for the future.

I spend virtually all my free time (2-5 hours a day) reading on real estate and am learning very quickly but wanted to reach out from people who had real experience!

Please feel free to share your experiences and knowledge with me. I am so hungry to learn (and earn)! :)

Best,

-Ben Leary